European travel and leisure stocks under pressure after Paris attacks

European stocks were proving resilient in the aftermath of Friday’s terror attacks in Paris, but the travel and leisure sector was under pressure, with the Stoxx 600 sub-index down 2%.

Meanwhile, shares in airlines such as Air France-KLM, Deutsche Lufthansa and British Airways parent International Consolidated Airlines Group were all in the red.

Eurotunnel, which controls the Channel Tunnel, was also under the cosh, while shares in French hotel group Accor fell sharply.

Kepler Cheuvreux pointed out that Accor is the most exposed group in France, with 30% of its EBIT coming from France and around 20% from Paris.

Kepler said the consequences of the Paris attacks were negative for the entire travel and leisure sector in Europe and especially France, noting that all large shops have been closed, along with museums and public buildings.

“People only travel when they feel they are safe. If not, international tourism in particular can be hit hard considering that conventions, fairs or any other leisure trips can be postponed to a safer period."

“Considering that 50% of total tourists worldwide travel for leisure, and the other 50% travel for business purposes and that gateway cities such as Paris are more driven by business clientele than leisure, the hit could be lower, but it is still too early and unpredictable to gauge the real consequences,” said Kepler.